The project sponsor, the Russkiy Mir Group, has been involved in Russia’s oil transportation sector since 1993. The Group leases RTCs to Russia’s oil companies and is now undertaking the construction of the Taman terminal, which will be Russia’s first LPG port terminal. The borrowers are 100% owned by Malmros Continental Property Company B.V., incorporated in the Netherlands.

Project costs are estimated to be $264 million. The proposed $100 million IFC investments consists of a $45 million A Loan for IFC’s own account and a $55 million B Loan for the account of IFC’s B-Loan participants. This will be IFC’s second investment in the Group; IFC’s Board approved a $15 million A Loan on April 6, 2004.

45.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	45.0
Equity

* These investment figures are indicative

The Russkiy Mir Group is located in Moscow but provides RTCs to oil companies that are used throughout Russia. The Taman terminal is located on the Black Sea coast, near the city of Anapa.

The project is expected to play a significant role in attracting investment to the privately owned and operated portion of the railway system, and encourage the development of new port facilities. The Taman terminal will have a strong demonstration effect and advance the development of the Iron Horn Port area near the city of Anapa, where the Taman terminal is located. The project will involve the construction of the first modern LPG marine export terminal in Russia and will help set the technical and environmental standards of similar future projects. IFC’s investment will assist in improving Russia’s rail system, increase energy sector activity, create local construction and operational jobs, and increase Russia’s industrial capacity.

This is a Category B project according to IFC’s environmental and social review procedure. Because IFC recently reviewed the Group’s railway operator activities for IFC’s first investment and found it to be compliant with applicable Russian laws and regulations, the second review focused upon the construction and operation of the Taman terminal. For the Taman terminal, IFC’s review consists of appraising information submitted by the Group, including feasibility studies and related environmental impact assessment documents prepared for submission to the relevant Russian national and regional authorities. IFC also conducted field visits to the Taman terminal site. Environmental and social issues associated with the Taman terminal include: siting and land acquisition, construction impacts, hazardous materials management, emergency preparedness and response, terminal pollution and waste management, navigational safety, community engagement, cultural heritage, employee safety, and environmental systems management.

The Group, in coordination with the Krasnodar regional government authorities, presented plans to address these issues to ensure the Taman terminal will comply with applicable Russian laws and regulations and IFC environmental and social requirements.

The Group continues to demonstrate that its railway related operations comply with Russian railway and IFC requirements.
Location of environmental documents in locally affected community
Environmental documentation will be made available at the following locations: - In Moscow: Russkiy Mir Headquarters 3, 1st Shchipkovskiy Lane Moscow 115093 Russia Olga Platonova Telephone: 7-095-787-5858, extension extension 1022 Fax. 7-095-787-0913 - In Krasnodar region: Tamanneftegas office 30, Mayakovskogo street Temryuk Krasnodar region 353501 Russia Tel/fax 7-861-484-13-91